Graco Inc. Announces Changes to Reporting Segments for 2025
Graco Inc. Announces Changes to Reporting Segments
Graco Inc. (NYSE: GGG), a prominent manufacturer specializing in fluid handling equipment, has recently shared important updates regarding its financial reporting structure. This transition, effective from January 1, 2025, aims to improve clarity and enhances visibility into its business performance. The company will now categorize its operations into three distinct reportable segments: Contractor, Industrial, and Expansion Markets.
Details of the New Segments
As part of this reorganization, the Industrial segment will incorporate the newly established Industrial Division and the existing Powder Division. To create a robust Industrial Division, Graco is merging its current Industrial and Lubrication Equipment Divisions, alongside the Process Transfer Equipment business from its existing Process Division. The Powder Division will retain its current structure without any changes.
Understanding the Industrial Segment
The Industrial segment's rebranding highlights Graco’s commitment to optimal growth and innovation. By combining these operational areas, the company anticipates improved efficiency and effectiveness in serving its customers.
The Expansion Markets Segment
Moreover, the restructured Expansion Markets segment will include the Expansion Markets Division, which seeks to drive growth through strategic ventures in new or adjacent markets. This segment aims to leverage existing capabilities in environmental sectors, semiconductor production, high-pressure valves, and electric motors. This strategic focus on inorganic growth will allow Graco to explore promising opportunities for future acquisitions and developments.
Impacts on Contractor Segment
The Contractor segment will continue to function as it has in prior periods. This continuity provides stability to customers while aligning with Graco's overall strategic vision.
About Graco Inc.
Graco Inc. excels in providing superior technology and expertise for fluid management across industrial and commercial environments. The company is adept at designing, manufacturing, and marketing equipment that facilitates the movement, measurement, control, dispensing, and spraying of fluid and powder materials.
As an industry leader based in Minneapolis, Graco maintains a global presence, serving diverse sectors such as manufacturing, processing, construction, and maintenance. The company’s objective is to deliver top-tier technology solutions tailored to meet customer needs effectively. For more information on Graco Inc. and its offerings, visit www.graco.com.
Frequently Asked Questions
What are the new reportable segments for Graco Inc.?
Starting January 1, 2025, Graco will report under Contractor, Industrial, and Expansion Markets segments.
What will the Industrial segment consist of?
The Industrial segment will include the new Industrial Division and the Powder Division, merging existing divisions into a unified global structure.
How does the Expansion Markets segment drive growth?
The Expansion Markets segment focuses on exploring new or adjacent markets through inorganic growth, including future acquisitions.
Will the Contractor segment change?
No, the Contractor segment will remain unchanged and continue as it has in previous reporting periods.
Why is Graco restructuring its reportable segments?
The restructuring aims to enhance business visibility and efficiency, providing better clarity in financial reporting.
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